Berkshire Hathaway buys $4.9 billion stake in Alphabet, shares jump

Alphabet shares surged 5.2% after Berkshire Hathaway, the multinational conglomerate led by Warren Buffett, disclosed a $4.93 billion stake, marking a rare technology investment as Buffett prepares to step down later this year.

Berkshire Hathaway has taken a significant position in Alphabet, the parent company of Google, which operates the world’s largest search engine, the YouTube video platform, and a wide range of online services including cloud computing and advertising. As of September 30, 2025, Berkshire owned 17.85 million shares, valued at $4.93 billion. The stake reflects Berkshire’s selective approach to technology investments amid concerns over heavy AI spending in the sector. Alphabet’s shares have climbed 46% year-to-date, substantially outperforming the S&P 500 index.

The move provides Berkshire exposure to a tech heavyweight priced more moderately than its peers: Alphabet trades at a price-to-earnings ratio of 25.01, compared with 30.02 for Nvidia, a leading producer of graphics processing units (GPUs) widely used in AI and gaming, and 29.37 for Microsoft, the software and cloud computing giant behind Windows, Office, and Azure. While Berkshire trimmed its holdings in Apple, the iPhone maker and leading consumer electronics company, it remains its largest stock, valued at $64.9 billion.

Analysts say the investment signals Berkshire’s strategy of balancing caution with opportunism, targeting companies with strong fundamentals and sustainable growth potential. Despite the portfolio’s heavy focus on financial services—accounting for 36.6% of assets—the Alphabet bet demonstrates the conglomerate’s willingness to selectively enter the technology sector, even as Buffett prepares to retire as CEO at the end of 2025.